Business Mantra News
- In terms of the Government of India’s Policy 2017-18, Reserve Bank of India has notified that No Farmer shall get Short Term Farm Loan without the production of Aadhaar Card.
- The quantum of Short Term Farm Loan shall be maximum of Rs.3.00 Lakhs at a rate of interest of 7% pa under Interest Subvention Scheme.
- If the Loan is repaid by the farmer before or within time frame, the rate of interest may further be reduced to 4% from 7% pa
- Reserve Bank of India has offered an interest subvention of 2% to the Rural and Semi-Urban Branches of Banks.
- Further interest subvention of 3% shall be available to those farmers, if the loan is repaid within scheduled time frame or earlier than the due date.
- The interest subvention scheme shall also be available to the small and marginal farmers availing the facility of Kisan Credit Cards, for a further period of six months if the farm produce is stored in a warehouse against warehousing receipt.
- The warehouse where the farm produce is to be kept has to be recognized by The Warehousing Development Regulatory Authority (WDRA)
- In case of effect of natural calamity, a further interest subvention shall be made available to the Banks for further one year, but the same shall not be continued for second year.
- The Banks need to take proper care of records as to loans of farmers, so that the genuine persons do not suffer due to lack of loan facility.